The pound euro (GBP/EUR) exchange rate is inching lower on Monday after gains last week.
The pound is weakening as UK consumer sentiment fell to its lowest level since early last year, highlighting the economic impact of the Middle East conflict.
The S&P Global UK Consumer Sentiment Index dropped to 44.1 in March, signalling deteriorating confidence.
Attention now turns to the Bank of England’s rate decision, where policymakers are expected to leave rates unchanged after rising oil and energy prices removed expectations of a near-term rate cut.
The euro is edging higher despite Europe’s vulnerability to rising energy costs, with oil still trading near $99 a barrel. The ECB is expected to leave rates unchanged this week.